Breadcrumb

Alan Brian Bond, and Albriond Capital Management, LLC

Securities Exchange Act of 1934
Release No. 50462 / September 28, 2004

INVESTMENT ADVISERS ACT OF 1940
Release No. 2307 / September 28, 2004

Admin. Proc. File No. 3-11689


In the Matter of

Alan Brian Bond, and Albriond Capital Management, LLC,

Respondent.



:
:
:
:
:
:
:
:
:
:

ORDER INSTITUTING ADMINISTRATIVE PROCEEDING PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTIONS 203(e) AND 203(f) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that a public administrative proceeding be, and hereby is, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Sections 203(e) and 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Alan Brian Bond ("Bond") and Albriond Capital Management, LLC ("Albriond") (collectively "Respondents").

II.

In anticipation of the institution of these proceedings, Respondents have submitted Offers of Settlement (the "Offers") which the Commission has determined to accept. Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over them and the subject matter of these proceedings, and the findings contained in Section III.2 below, which are admitted, Bond and Albriond consent to the entry of this Order Instituting Administrative Proceeding Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Sections 203(e) and 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.

III.

On the basis of this Order and Respondents' Offers, the Commission finds that:

1. From 1991 to December 1998, Bond was the president and chief investment officer of Bond, Procope Capital Management ("BPCM"), a general partnership registered with the Commission as an investment adviser (File No. 801-38855). In December 1998, Bond bought out his BPCM partners and reconstituted the firm as a limited liability company named Albriond Capital Management, LLC ("Albriond"). Bond registered Albriond with the Commission as an investment adviser (File No. 801-56104) and withdrew BPCM's registration as an investment adviser. Since December 1998, Bond has been the president, chief investment officer, and managing member of Albriond. Albriond's most recent Form ADV, filed in March 2001, indicated that it had assets under management of over $25 million.

2. On September 27, 2004, a final judgment was entered against Bond and Albriond pursuant to their Consents, permanently enjoining them from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and Sections 206(1), 206(2) and 207 of the Advisers Act in the civil action entitled >Securities and Exchange Commission v. Alan Brian Bond, et al., Civil Action Number 99 Civ. 12092 (RO), in the United States District Court for the Southern District of New York. Additionally, the final judgment permanently enjoined Bond from future violations of Section 17(a) of the Securities Act of 1933.

3. The Commission's Second Amended Complaint alleged that Bond, from at least September 1993 through November 1998, through his former investment advisory firm, BPCM, received over $6.9 million in commission kickbacks from three brokerage firms. The kickbacks, which were siphoned off of the investment returns of Bond's clients in the form of mark-ups or mark-downs on principal trades, were used by Bond to finance an opulent personal lifestyle that included the purchase of more than 75 luxury and antique automobiles and a large home and beachfront condominium in Florida. The Second Amended Complaint also alleged that Bond filed a false Form ADV, and that beginning in March 2000, Bond, using Albriond, participated in an ongoing trade allocation or "cherry-picking" scheme, in which Bond allocated the majority of profitable trades to himself, realizing actual profits of nearly $6.6 million, and allocated the majority of unprofitable trades to three of his advisory clients, causing them to lose a total of over $56.8 million.

IV.

In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondents' Offers.

Accordingly, it is hereby ORDERED:

Pursuant to Section 15(b)(6) of the Exchange Act and Section 203(f) of the Advisers Act, Bond be, and hereby is barred from association with any broker, dealer or investment adviser, and that, pursuant to Section 203(e) of the Advisers Act, Albriond's registration as an investment adviser be, and hereby is, revoked.

Any reapplication for association by Bond will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against Bond, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.

For the Commission, by its Secretary, pursuant to delegated authority.

Jonathan G. Katz
Secretary